Over-concentration and failure to diversify in investment loss cases

Over-concentration is when a financial advisor or broker recommends placing a significant portion of your investment portfolio into a single asset class or type of investment.  it is a failure to diversify and a violation of the requirements of brokers and financial advisors in making recommendations.  As a rule of thumb, not more than 20% of an investor’s assets should be in a single type of investment.

Such recommendations may not result in losses for years, until a shift in market forces, or a hidden defect of the investment reveals itself.

The failure to diversify in is often connected to other violations, and will often reveal other problems with the sale of the investment. Often, the broker or financial advisor will violate other rules such as breach of fiduciary duty.  For example, over-concentrating the investor’s portfolio may occur he or she receives a higher commission for a certain type of investment.  Failure to properly diversify an investment portfolio may also be related to professional negligence, and fraud, for failing to disclose material facts.

If you have significant losses, please contact Attorney Daniel A. Bakondi, Esq. today for an assessment of your options and investment loss recovery strategies.

Attorney Daniel A. Bakondi, Esq.

The Law Office of Daniel Bakondi
870 Market Street, Suite 1157
San Francisco CA 94102

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IMPORTANT NOTICE: No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into.  Attorney licensed in California only.  Your issue may be time sensitive and may result in loss of rights if you do not act in time.  Thank you.

“Best of the Best: I hired Daniel a year and a half ago to help with an investment gone wrong. I felt him to be an attorney who is committed to justice and takes pride in all his endeavors. He has the integrity and dedication to follow through and make the process as painless as possible. Daniel guided me to a conclusion in a situation that was very difficult to do. I feel he is the best of the best of young and up and coming attorneys in the city.”M.F.

“Daniel Bakondi is an attorney who is devoted to his clients. He is knowledgeable, expedient, and meticulous about details. He is honest and provides his clients with a realistic evaluation of their expectations. He doesn’t waste your time. Daniel Bakondi is the attorney who will be in your corner all the way.” N.T.




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